Analysis of Sales Tax Compliance for Economic Nexus and SaaS Software Subscriptions
A SaaS company practitioner shared their research on economic nexus and software taxability matrices, noting that states define SaaS differently, with some treating it as canned software on tangible media and others as custom software. The article aims to find reliable sources of information for tracking and compliance.
Recently, I joined a SaaS (Software as a Service) company and conducted extensive research on economic nexus rules and the software taxability matrix. The research found that there are significant differences in the legal definitions of SaaS across U.S. states: some states have not yet provided clear definitions, while others classify SaaS as "canned software delivered on tangible media" or "custom software delivered on tangible media." This inconsistency in classification directly affects sales tax collection obligations and compliance pathways.
In this context, I am actively seeking reliable information sources or professional solutions to help the company continuously track policy changes in each state and ensure tax compliance in cross-state operations. Specifically, I need a platform or consulting service that can integrate economic nexus thresholds, SaaS taxability rules, and update notifications for each state.
If you have relevant experience or recommended resources, please feel free to share. Thank you for your help.